S.Korea stocks fall on caution ahead of U.S. Fed meeting

    * KOSPI falls, foreigners net sellers
    * Korean won weakens against U.S. dollar
    * South Korea benchmark bond yield rises

    SEOUL, March 17 (Reuters) - Round-up of South Korean
financial markets:
    ** South Korean shares fell on Wednesday, following a
sell-off in Wall Street overnight, as most investors kept to the
sidelines ahead of the U.S. Federal Reserve's policy meeting.
The won weakened, while the benchmark bond yield rose.
    ** The KOSPI         fell 23.72 points, or 0.77%, to
3,043.45 by 0231 GMT, reversing a 0.71% gain on Tuesday. It
dropped over 1% in early trade.
    ** Most heavyweights declined, with chip giants Samsung
Electronics             and SK Hynix             falling 0.6%
and 0.36%, respectively. Battery maker LG Chem            
dropped 3.93%.
    ** "As market volatility may sharply rise after the Fed
meeting, investors are cautiously taking a wait-and-see stance,"
said Samsung Securities' analyst Seo Jung-hun.             
    ** The S&P 500 and Dow Jones retreated on Tuesday as yields
on longer-maturity U.S. Treasury bonds ticked up.     
    ** Foreigners were net sellers of 347.8 billion won ($307.69
million) worth of shares on the main board.
    ** The won was quoted at 1,130.7 per dollar on the onshore
settlement platform           , 0.09% lower than its previous
close at 1,129.7.
    ** In offshore trading, the won        was quoted at 1,130.2
per dollar, down 0.1% from the previous day, while in
non-deliverable forward trading, its one-month contract
              was quoted at 1,129.8.
    ** In money and debt markets, June futures on three-year
treasury bonds         fell 0.04 points to 110.63.
    ** The most liquid 3-year Korean treasury bond yield rose by
0.5 basis points to 1.182%, while the benchmark 10-year yield
rose by 3.7 basis points to 2.137%.

($1 = 1,130.3700 won)

 (Reporting by Joori Roh; Additional reporting by Jihoon Lee;
Editing by Devika Syamnath)